Bank of America this month will try to unload roughly $42 billion of mortgage servicing rights through two different offerings, one involving private label product, according to investors and investment bankers familiar with the bank's auction plans.The first offering, which has been labeled 'Ganesha,' involves the sale of $22 billion of Freddie Mac related MSRs. The package has roughly 18.5% of delinquencies.The second offering – which was in the market and then pulled – involves $20 billion of private label MSRs, said one source who viewed the package. This auction has been dubbed 'Puma.' It's expected the Puma package will be rebid, and possibly reduced.
“The PLS package is pretty clean,” said one investor.
Both portfolios are being offered through Phoenix Capital, Denver, sources said. Phoenix has a policy of not discussing its auctions or talking to the press.
A bank spokesman declined to comment on specifics, but offered up this: “Bank of America has announced strategies to sell non-core holdings, put legacy mortgage issues behind it and, like the industry as a whole, preserve capital in preparation for Basel III.”
BofA has been auctioning off and selling MSRs on a quarterly basis since last fall when it sold $74 billion of receivables to Fannie Mae.